SALESFORCE INC (CRM) Fundamental Analysis & Valuation

NYSE:CRM • US79466L3024

202.11 USD
+0.72 (+0.36%)
At close: Mar 6, 2026
200.53 USD
-1.58 (-0.78%)
After Hours: 3/6/2026, 8:09:47 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

This CRM fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

6

CRM gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 276 industry peers in the Software industry. While CRM has a great profitability rating, there are some minor concerns on its financial health. CRM is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!


Dividend Valuation Growth Profitability Health

8

1. CRM Profitability Analysis

1.1 Basic Checks

  • CRM had positive earnings in the past year.
  • CRM had a positive operating cash flow in the past year.
  • CRM had positive earnings in each of the past 5 years.
  • Each year in the past 5 years CRM had a positive operating cash flow.
CRM Yearly Net Income VS EBIT VS OCF VS FCFCRM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 5B 10B

1.2 Ratios

  • CRM has a better Return On Assets (6.64%) than 77.17% of its industry peers.
  • CRM's Return On Equity of 12.61% is fine compared to the rest of the industry. CRM outperforms 77.17% of its industry peers.
  • The Return On Invested Capital of CRM (9.59%) is better than 85.14% of its industry peers.
  • CRM had an Average Return On Invested Capital over the past 3 years of 8.16%. This is below the industry average of 10.72%.
  • The last Return On Invested Capital (9.59%) for CRM is above the 3 year average (8.16%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 6.64%
ROE 12.61%
ROIC 9.59%
ROA(3y)5.6%
ROA(5y)3.71%
ROE(3y)9.89%
ROE(5y)6.5%
ROIC(3y)8.16%
ROIC(5y)5.44%
CRM Yearly ROA, ROE, ROICCRM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 2 4 6 8 10

1.3 Margins

  • With an excellent Profit Margin value of 17.96%, CRM belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
  • In the last couple of years the Profit Margin of CRM has remained more or less at the same level.
  • CRM has a better Operating Margin (21.47%) than 89.13% of its industry peers.
  • CRM's Operating Margin has improved in the last couple of years.
  • CRM has a better Gross Margin (77.68%) than 73.91% of its industry peers.
  • In the last couple of years the Gross Margin of CRM has remained more or less at the same level.
Industry RankSector Rank
OM 21.47%
PM (TTM) 17.96%
GM 77.68%
OM growth 3Y53.59%
OM growth 5Y58.58%
PM growth 3Y200.25%
PM growth 5Y-1.29%
GM growth 3Y1.94%
GM growth 5Y0.86%
CRM Yearly Profit, Operating, Gross MarginsCRM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

4

2. CRM Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CRM is destroying value.
  • The number of shares outstanding for CRM has been reduced compared to 1 year ago.
  • The number of shares outstanding for CRM has been increased compared to 5 years ago.
  • CRM has a worse debt/assets ratio than last year.
CRM Yearly Shares OutstandingCRM Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 200M 400M 600M 800M
CRM Yearly Total Debt VS Total AssetsCRM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 20B 40B 60B 80B 100B

2.2 Solvency

  • An Altman-Z score of 2.94 indicates that CRM is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • CRM's Altman-Z score of 2.94 is fine compared to the rest of the industry. CRM outperforms 63.77% of its industry peers.
  • CRM has a debt to FCF ratio of 1.00. This is a very positive value and a sign of high solvency as it would only need 1.00 years to pay back of all of its debts.
  • CRM's Debt to FCF ratio of 1.00 is fine compared to the rest of the industry. CRM outperforms 75.00% of its industry peers.
  • CRM has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
  • Looking at the Debt to Equity ratio, with a value of 0.18, CRM is in line with its industry, outperforming 46.38% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.18
Debt/FCF 1
Altman-Z 2.94
ROIC/WACC0.87
WACC11.06%
CRM Yearly LT Debt VS Equity VS FCFCRM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 20B 40B 60B

2.3 Liquidity

  • A Current Ratio of 0.76 indicates that CRM may have some problems paying its short term obligations.
  • CRM has a worse Current ratio (0.76) than 87.68% of its industry peers.
  • CRM has a Quick Ratio of 0.76. This is a bad value and indicates that CRM is not financially healthy enough and could expect problems in meeting its short term obligations.
  • With a Quick ratio value of 0.76, CRM is not doing good in the industry: 87.32% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.76
Quick Ratio 0.76
CRM Yearly Current Assets VS Current LiabilitesCRM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 10B 20B 30B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

7

3. CRM Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 23.16% over the past year.
  • CRM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.60% yearly.
  • CRM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.58%.
  • The Revenue has been growing by 14.34% on average over the past years. This is quite good.
EPS 1Y (TTM)23.16%
EPS 3Y33.71%
EPS 5Y20.6%
EPS Q2Q%37.05%
Revenue 1Y (TTM)9.58%
Revenue growth 3Y9.82%
Revenue growth 5Y14.34%
Sales Q2Q%12.09%

3.2 Future

  • CRM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.19% yearly.
  • CRM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.78% yearly.
EPS Next Y5.86%
EPS Next 2Y9.26%
EPS Next 3Y12.48%
EPS Next 5Y12.19%
Revenue Next Year11.1%
Revenue Next 2Y10.28%
Revenue Next 3Y10.25%
Revenue Next 5Y9.78%

3.3 Evolution

  • The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
CRM Yearly Revenue VS EstimatesCRM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 20B 40B 60B 80B
CRM Yearly EPS VS EstimatesCRM Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 10 20 30

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Find the best growth stocksShow best growing peers

6

4. CRM Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 16.10, which indicates a correct valuation of CRM.
  • Based on the Price/Earnings ratio, CRM is valued a bit cheaper than 79.35% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of CRM to the average of the S&P500 Index (26.29), we can say CRM is valued slightly cheaper.
  • The Price/Forward Earnings ratio is 15.21, which indicates a correct valuation of CRM.
  • CRM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CRM is cheaper than 76.45% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of CRM to the average of the S&P500 Index (24.57), we can say CRM is valued slightly cheaper.
Industry RankSector Rank
PE 16.1
Fwd PE 15.21
CRM Price Earnings VS Forward Price EarningsCRM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • 81.16% of the companies in the same industry are more expensive than CRM, based on the Enterprise Value to EBITDA ratio.
  • Based on the Price/Free Cash Flow ratio, CRM is valued cheaply inside the industry as 84.78% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 13.15
EV/EBITDA 15.25
CRM Per share dataCRM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CRM does not grow enough to justify the current Price/Earnings ratio.
  • CRM has an outstanding profitability rating, which may justify a higher PE ratio.
  • A more expensive valuation may be justified as CRM's earnings are expected to grow with 12.48% in the coming years.
PEG (NY)2.75
PEG (5Y)0.78
EPS Next 2Y9.26%
EPS Next 3Y12.48%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

3

5. CRM Dividend Analysis

5.1 Amount

  • CRM has a yearly dividend return of 0.87%, which is pretty low.
  • In the last 3 months the price of CRM has falen by -22.44%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
  • CRM's Dividend Yield is rather good when compared to the industry average which is at 0.58. CRM pays more dividend than 90.94% of the companies in the same industry.
  • With a Dividend Yield of 0.87, CRM pays less dividend than the S&P500 average, which is at 1.82.
Industry RankSector Rank
Dividend Yield 0.87%

5.2 History

  • CRM has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
CRM Yearly Dividends per shareCRM Yearly Dividends per shareYearly Dividends per share 2024 2025 2026 0.5 1 1.5

5.3 Sustainability

  • CRM pays out 21.28% of its income as dividend. This is a sustainable payout ratio.
DP21.28%
EPS Next 2Y9.26%
EPS Next 3Y12.48%
CRM Yearly Income VS Free CF VS DividendCRM Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 5B 10B
CRM Dividend Payout.CRM Dividend Payout, showing the Payout Ratio.CRM Dividend Payout.PayoutRetained Earnings

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CRM Fundamentals: All Metrics, Ratios and Statistics

SALESFORCE INC

NYSE:CRM (3/6/2026, 8:09:47 PM)

After market: 200.53 -1.58 (-0.78%)

202.11

+0.72 (+0.36%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-25
Earnings (Next)05-26
Inst Owners84.15%
Inst Owner Change5.57%
Ins Owners2.57%
Ins Owner Change0.19%
Market Cap189.38B
Revenue(TTM)41.52B
Net Income(TTM)7.46B
Analysts79.31
Price Target311.82 (54.28%)
Short Float %2.1%
Short Ratio1.7
Dividend
Industry RankSector Rank
Dividend Yield 0.87%
Yearly Dividend1.67
Dividend Growth(5Y)N/A
DP21.28%
Div Incr Years0
Div Non Decr Years0
Ex-Date04-09
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)18.24%
Min EPS beat(2)12.59%
Max EPS beat(2)23.9%
EPS beat(4)4
Avg EPS beat(4)10.15%
Min EPS beat(4)0.37%
Max EPS beat(4)23.9%
EPS beat(8)7
Avg EPS beat(8)6.63%
EPS beat(12)11
Avg EPS beat(12)5.77%
EPS beat(16)15
Avg EPS beat(16)7.77%
Revenue beat(2)0
Avg Revenue beat(2)-0.97%
Min Revenue beat(2)-1.12%
Max Revenue beat(2)-0.82%
Revenue beat(4)0
Avg Revenue beat(4)-0.53%
Min Revenue beat(4)-1.12%
Max Revenue beat(4)0%
Revenue beat(8)1
Avg Revenue beat(8)-0.62%
Revenue beat(12)1
Avg Revenue beat(12)-0.53%
Revenue beat(16)2
Avg Revenue beat(16)-0.28%
PT rev (1m)-5.44%
PT rev (3m)-7.21%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)2.5%
EPS NY rev (1m)0.14%
EPS NY rev (3m)3.17%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)2.59%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.44%
Valuation
Industry RankSector Rank
PE 16.1
Fwd PE 15.21
P/S 4.56
P/FCF 13.15
P/OCF 12.63
P/B 3.2
P/tB N/A
EV/EBITDA 15.25
EPS(TTM)12.55
EY6.21%
EPS(NY)13.29
Fwd EY6.57%
FCF(TTM)15.37
FCFY7.6%
OCF(TTM)16
OCFY7.92%
SpS44.32
BVpS63.12
TBVpS-5.99
PEG (NY)2.75
PEG (5Y)0.78
Graham Number133.5
Profitability
Industry RankSector Rank
ROA 6.64%
ROE 12.61%
ROCE 11.86%
ROIC 9.59%
ROICexc 10.98%
ROICexgc 832.21%
OM 21.47%
PM (TTM) 17.96%
GM 77.68%
FCFM 34.68%
ROA(3y)5.6%
ROA(5y)3.71%
ROE(3y)9.89%
ROE(5y)6.5%
ROIC(3y)8.16%
ROIC(5y)5.44%
ROICexc(3y)9.79%
ROICexc(5y)6.53%
ROICexgc(3y)348.77%
ROICexgc(5y)217.21%
ROCE(3y)10.09%
ROCE(5y)6.73%
ROICexgc growth 3Y197.62%
ROICexgc growth 5Y168.58%
ROICexc growth 3Y64.12%
ROICexc growth 5Y61.34%
OM growth 3Y53.59%
OM growth 5Y58.58%
PM growth 3Y200.25%
PM growth 5Y-1.29%
GM growth 3Y1.94%
GM growth 5Y0.86%
F-Score7
Asset Turnover0.37
Health
Industry RankSector Rank
Debt/Equity 0.18
Debt/FCF 1
Debt/EBITDA 0.83
Cap/Depr 16.36%
Cap/Sales 1.43%
Interest Coverage 250
Cash Conversion 119.51%
Profit Quality 193.13%
Current Ratio 0.76
Quick Ratio 0.76
Altman-Z 2.94
F-Score7
WACC11.06%
ROIC/WACC0.87
Cap/Depr(3y)17.96%
Cap/Depr(5y)19.34%
Cap/Sales(3y)1.76%
Cap/Sales(5y)2.11%
Profit Quality(3y)207.81%
Profit Quality(5y)804.88%
High Growth Momentum
Growth
EPS 1Y (TTM)23.16%
EPS 3Y33.71%
EPS 5Y20.6%
EPS Q2Q%37.05%
EPS Next Y5.86%
EPS Next 2Y9.26%
EPS Next 3Y12.48%
EPS Next 5Y12.19%
Revenue 1Y (TTM)9.58%
Revenue growth 3Y9.82%
Revenue growth 5Y14.34%
Sales Q2Q%12.09%
Revenue Next Year11.1%
Revenue Next 2Y10.28%
Revenue Next 3Y10.25%
Revenue Next 5Y9.78%
EBIT growth 1Y16.32%
EBIT growth 3Y68.68%
EBIT growth 5Y81.32%
EBIT Next Year37.53%
EBIT Next 3Y17.63%
EBIT Next 5Y4.52%
FCF growth 1Y15.83%
FCF growth 3Y31.64%
FCF growth 5Y28.62%
OCF growth 1Y14.54%
OCF growth 3Y28.24%
OCF growth 5Y25.58%

SALESFORCE INC / CRM FAQ

What is the ChartMill fundamental rating of SALESFORCE INC (CRM) stock?

ChartMill assigns a fundamental rating of 6 / 10 to CRM.


What is the valuation status for CRM stock?

ChartMill assigns a valuation rating of 6 / 10 to SALESFORCE INC (CRM). This can be considered as Fairly Valued.


Can you provide the profitability details for SALESFORCE INC?

SALESFORCE INC (CRM) has a profitability rating of 8 / 10.


What is the valuation of SALESFORCE INC based on its PE and PB ratios?

The Price/Earnings (PE) ratio for SALESFORCE INC (CRM) is 16.1 and the Price/Book (PB) ratio is 3.2.


How financially healthy is SALESFORCE INC?

The financial health rating of SALESFORCE INC (CRM) is 4 / 10.